Measuring up a double story apartment for finance

Hi everyone.

I've found an interesting 2 storey 1BR apartment, with courtyard and lock-up garage. However, after measuring it all up, I'm still a little unsure as to whether it hits the 50m2 mark necessary for finance.

What I'm unsure about is what to include in my measurements to make sure the property is definitely seen to be above 50m2?
eg. I'm pretty sure that I can't include the courtyard, and haven't included the garage (although it is attached to the living room, and theoretically could be used as a 2nd bedroom).
Probably my main concern is the stairs and stairwells. If I subtract the space taken up by the stairs on the ground floor (approximately 3m2) and the stairwell on the upperfloor (approx 4m2) then the apartment floorspace only comes to about 46m2. But if I include them in my measurements then the apartment comes to a whopping 53m2! :)

Also, is it usually the case that the lender will send someone out to measure up a property prior to providing finance?

Any help is greatly appreciated!

Kind Regards,

Adam.
 
The valuer should do an approximate measure. It all depends on where the property is located. If it's in a good area with high demand then the lender may include the garage/balconies when calculating area.
 
eg. I'm pretty sure that I can't include the courtyard, and haven't included the garage (although it is attached to the living room, and theoretically could be used as a 2nd bedroom).
Probably my main concern is the stairs and stairwells. If I subtract the space taken up by the stairs on the ground floor (approximately 3m2) and the stairwell on the upperfloor (approx 4m2) then the apartment floorspace only comes to about 46m2. But if I include them in my measurements then the apartment comes to a whopping 53m2! :)


LOL

Normally the lender will just rely on the contract of sale and what it measures up in the plan; if it does n';t have measurements in the plan then valuer will do a roughly measurement.

Are you wanting to borrow over 80%?
If the lender uses QBE then the 50 squ meters "normally" don't include the balcony or garage http://xdmin.qbelmi.com.au/Uploads/Documents/c76dec81-d765-41ac-a42c-a062dafedc31.pdf

I say normally because some lenders have the discretion to over ride this.
However the another LMI provider Genworth will include the balcony and Garage with most lenders.

Regards
Michael
 
One simple way is to have a look at the Building Unit Plan as it will show the internal measurements including balcony and garage.

Both can normally be included depending on the particular lender.

At 40 sq M 2 internally plus extras you should be good to go on a standard lend with many a lender.
 
Thanks for all the info.

Hey Aaron, the apartment is in a nice area of St Kilda, VIC, so hopefully the lender will look favourably upon it. Unfortunately the property is selling at auction. So I'm assuming the lender won't bother sending out a valuer until it has actually been purchased.

Mick, yep I'm looking for the highest LVR that I can find hopefully 90 to 95%... depending on LMI.
That's interesting about the different insurers having different measurement criteria. Noob question: Are you able to shop around for LMI, or is it completely up to the lender? Cheers.

Hey Richard. Thanks for the info. I guess it's nothing unusual but the vendor's solicitor still hasn't provided the agent with the contract... and the auction's this Saturday. So I still haven't seen the Building Unit Plan o_O

Cheers.
 
Last edited:
Thanks for all the info.

Hey Aaron, the apartment is in a nice area of St Kilda, VIC, so hopefully the lender will look favourably upon it. Unfortunately the property is selling at auction. So I'm assuming the lender won't bother sending out a valuer until it has actually been purchased.

Mick, yep I'm looking for the highest LVR that I can find hopefully 90 to 95%... depending on LMI.
That's interesting about the different insurers having different measurement criteria. Noob question: Are you able to shop around for LMI, or is it completely up to the lender? Cheers.

Hey Richard. Thanks for the info. I guess it's nothing unusual but the vendor's solicitor still hasn't provided the agent with the contract... and the auction's this Saturday. So I still haven't seen the Building Unit Plan o_O

Cheers.


Id you NEED an LVR > than 80 % , and you havent got the size and structure thing sorted with a lender before auction, you could be taking a bit of a risk there.

The lender decides what LMI provider is used, some lenders have an in house approval or a delegated authority making it a little easier, but still unless you have this thing properly measured up, id tread with care

ta
rolf
 
Hi Adrock,

As rolf has indicated - tread lightly. It's never good to go gung-ho on a borderline case like this because all you need is an ultra-conservative valuer/lender and you're in big trouble.
 
Thanks a lot guys :)

Interesting, I spoke with NAB and they ARE happy to include the courtyard as part of the apartment size.
It seems that almost every "rule" I read about when it comes to property seems like it has exceptions. I've read 100 times that you shouldn't include courtyard or parking space in an apartment's measurements.
Reminds me of an old saying: "Tools" not "Rules"... :)
 
any links or have you already put in an offer subject to finance?

these double storey apartments are rare in melbourne as they aren't or rarely get bulid anymore.
 
Sorry to revive this thread, but there have been so many 'small apartment finance' threads it seemed pointless to start another.

Say an apartment is just under 35 sqm internally and just under 50 sqm including courtyard. So some lenders will include courtyards, others won't. Either way, the apartment is still under the 50 sqm benchmark. Apartment is located in inner Melbourne. LVG would be 80%. Which lenders should I target?
 
Cheers Rolf, Aaron. Nice to know even smaller is doable.

Just be aware that the smaller the place is, the less likely that you will get LMI approval. Also the purpose/use of the security is important - anything used for student accommodation or serviced apartments on a 5x5x5 lease are a no-go zone for most banks no matter what the LVR is.
 
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